NEARLY A MILLION SENT

Grey River Argus, 19 February 1932, Page 5

NEARLY A MILLION SENT

AUSTRALIA PAYS N.S.W. Interest Overseas BROKERS RECANT. (Aus. & N.Z. Cable Assn). LONDON, February 17. Immediately the money was recciv cd from Australia this forenoon, Aus tralia House arranged for the West xi inistor Bank to post interest warrants to 'English bondholders. Arrangements are now proceeding to pay the American bondholders.

At the result of Mr Collin’s protest, a firm of stock brokers has issued a new circular to clients, recanting the previous disparaging references to Australian stocks. The covering letter says: The later figures published, and the other information now available, which modify materially the estimates given previously showing Australia is in a far more avourable position we therefore now advise the retention of Australian Government stocks. LYONS SENDS CASH. LANG ASKED FOR QUO(TA. CANBERRA, February 18. The Prime Minister, Mr Lyons, announced that instructions have been forwarded to London to pay immediately the interest to the holders of the bonds in respect to which New South Wales defaulted, and the necessary amount, £958,763, has been transmitted. Mr Lyons has also communicated with Mr Lang asking him to remit his share, £458,763, of the overdue interest in accordance with his offer which he repeated yesterday. He reminds Air Lang that the Common wealth is not hostile to New South Wales, and that the whole of the present trouble has been caused by Mr Lang’s failure to live up to his promises to reduce expenditure and adjust his budget, thus involving tho default to the overseas bondholders. U.S.A. BONDHOLDERS SATISFIED. (Aus. N.Z. Cable Assn.) NEW YORK, February 17. Word from Mr Lyons, Australian Prime Minister, that 718,528 dollars 98 cents, being the interest and sinking fund, would be forwarded through the Australian High Commissioner of London to the fiscal agents for the New South Wales loans in America, was received early to-day, and it later was augmented by a message from London that the funds would be made available through the Australian office here. The money was not received at the close of business to-day, but it is expected to come to hand early to-mor-row morning. Australian stocks have showed moderate gains here to-day. New South Wales stocks were up to ■ two points, and Commonwealth stocks ; one and a-half points. MR. LANG’S ALLEGATION. SYDNEY, February 17. The Premier (Mr Lang) has informed the Prime Minister (Mr Lyons) that he still adheres to his original offer to provide £457,767 to wards the New South Wales bondholders’ overdue interest of £948,763. He emphasises that default has been occasioned by the determination of the Commonwealth Government co withhold further financial accommodation from the New South Wales Government, and says the Common wealth Govern-menct. ha-i itself defaulted, notwithstandiag that it had granted financial aid to Western Australia and Tasmania.